COCO Vita Coco Company Inc

Corinthian Colleges, Inc. (Nasdaq:COCO) announced today a new private education discount loan program with ASFG, LLC (ASFG) for Corinthian students (the "ASFG Program"). ASFG intends to fund approximately $450 million in new student loans over the next two years. Under the ASFG Program, an unaffiliated lender will continue to make private education loans to eligible students and subsequently sell those loans to ASFG or its designee. Under the Company's existing student loan program, the unaffiliated lender sells the loans to Corinthian.  

"We began our internal student lending program in 2008 when the credit crisis made it virtually impossible for students to find gap financing," said Jack Massimino, Corinthian's chairman and chief executive officer. "Our program provided an essential service for students, but it was not our intention to remain a lender over the long term. Our partnership with ASFG makes it possible to provide a source of loans for students who need financing in addition to federal and other student aid programs. In addition, our agreement with ASFG provides us with accelerated cash flows and assists us with meeting the 90/10 Rule, particularly after the Congressional relief associated with internal lending expires in July 2012." 

The ASFG Program will be made available to Corinthian students starting in the first quarter of fiscal 2012. As with the Company's previous discount loan program, under the ASFG Program the Company will pay a discount to ASFG for any loans purchased by ASFG and record the discount as a reduction to revenue. Under a backup loan purchase agreement with ASFG, the Company will be obligated to purchase any of the student loans on which no payment has been made for over 90 days. The Company expects its financial risk under this loan program to be substantially similar to the risk associated with its existing discount loan program. 

Under the agreement with ASFG, the Company is required to pay certain discount, transaction, management, origination and default aversion and other ancillary fees of approximately $17 - $19 million per year, which is incrementally $10 - $12 million higher per year than the fees payable under the Company's existing loan program. The loan origination agreement contains standard representations, warranties and covenants made by each party, as well as limited termination rights and customary events of default.

Separately, the Company sold to ASFG, on a non-recourse basis, part of its current portfolio of student loans for approximately $24 million, with no material gain or loss on the sale. In the fourth quarter of fiscal 2011, the Company expects to incur a one-time impairment charge of approximately $7 million associated with the sale of these loans. The charge is due to the write-off of receivables and liabilities, primarily imputed interest. 

For more detail about the ASFG Program, please see the 8-K filed today with the Securities and Exchange Commission.

About Corinthian Colleges, Inc.

Corinthian is one of the largest post-secondary education companies in North America. Our mission is to change students' lives. We offer diploma and degree programs that prepare students for careers in demand or for advancement in their chosen fields. Our program areas include health care, business, criminal justice, transportation technology and maintenance, construction trades and information technology. We have 123 Everest, Heald and WyoTech campuses, and also offer degrees online. For more information, go to http://www.cci.edu/.

The Corinthian Colleges, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8848

Certain statements in this press release may be deemed to be forward-looking statements under the Private Securities Litigation Reform Act of 1995. The company intends that all such statements be subject to the "safe-harbor" provisions of that Act. Such statements include but are not limited to, those regarding our beliefs and expectations regarding the amount of student lending to be made available under the ASFG Program, the anticipated acceleration of cash flows, the expected benefits for the Company's 90/10 compliance, and the cost of the Company's repurchase obligation. Many factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements or elsewhere, including the performance of loans under the ASFG program and student borrowing patterns. Other risks and uncertainties are described in the company's filings with the U.S. Securities and Exchange Commission. The historical results achieved by the company are not necessarily indicative of its future prospects. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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